Ecuador

ECU orthographic

Ecuador was the 59th largest economy in the world by nominal GDP in 2018. Its GDP per capita was $6,345 USD. It was the largest exporter of bananas by value in 2018. Personal remittances were 2.8 percent of GDP in 2018. It was ranked 66th in the World Bank's Human Capital Index and 102nd in the Economic Complexity Index in 2017. It is a member of the regional trading group Mercosur. Services was the largest economic sector in 2018 (51.6 percent of GDP), followed by manufacturing (14.6 percent), and agriculture (9.24 percent). In 2017, the largest export sectors were agriculture (49.5 percent), minerals (34.45 percent), and services (9.52 percent). The largest individual exports were crude oil (30.4 percent), bananas and plantains (16.15 percent), frozen shrimps (12.35 percent), and travel and tourism (6.84 percent). Its largest export partners were the USA (28.8 percent), Vietnam (6.64 percent), Peru (6.62 percent), Chile, (6.04 percent), and Russia (5.67 percent). The largest goods imports were refined petroleum (13.94 percent), cars (4.15 percent), and aromatic hydrocarbon mixes (4.1 percent). Ecuador gained independence from the Spanish in 1820 and then separated from Gran Colombia in 1830. Between 1860s and 1920s, cocoa was the main export. This was replaced by bananas in the 1940s, and oil in the 1970s. In the 1960s, the country switched from an open trade policy towards import substitution resulting in increased diversification. The economy grew strongly in the 1970s because of an increase in oil prices. The increase in revenue was accompanied by a large increase in public spending. By the late 1980s, public debt and inflation had risen leading to a debt crisis in 1993. The economy stabilised after dollarization in 2000 because it stopped the government from financing spending through seigniorage. Between 2001 and 2012, the oil price increased ten-fold propelling growth. From 2006, personal remittances became the largest source of national income after oil revenue. With the oil price declining in 2014, the economy fell into recession in 2015 and remained in recession in 2016. The government responded with reduced spending and new reforms. Growth has recovered slowly.

Its population in 2018 was 16,863,425 [1]

In 2015, 13.82% of its total energy
consumption was renewable [2]

In 2021, its GDP grew by 4.24% [2]

In 2021 it had a positive Current
Account Balance of US$bn 2.67 [3]

Its unemployment rate in 2021 was 4.15% [3]

Its Expenditure on R&D (as a percentage of
GDP) in 2014 was 0.44% [2]



What free trade areas or economic unions is it a member of?

Member of the Andean Community (ANDEAN) since 26/05/1969

Other members:

Bolivia, Colombia, Peru


What trade deals are there between Andean Community and other countries and economic unions?

MERCOSUR - CAN free trade area (from 31/12/2003)


What trade deals are there with other countries and economic unions?

Ecuador - Mexico partial scope agreement (from 01/05/1983)

El Salvador - Ecuador partial scope agreement (from 16/11/2017)

EFTA - Ecuador free trade agreement (from 01/11/2020)

UK - Andean countries trade agreement (from 01/01/2021)

Climate change denier, Mining Champion, Sworn Enemy of Green Policies — Gina Rinehart’s Lonely, Determined Path

The Thatcher fan and chair of Hancock Prospecting has little sympathy for the Left, green policies,

Lord Waverley: First In, Best Dressed — UK’s Bid to Join Key Regional Trade Agreement

The United Kingdom has applied to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP),
Read more

Don’t Expect Miracles from the Multilaterals

by Otaviano Canuto Latin American and Caribbean economies need help, but organisations such as the IDB

Banco FINCA Ecuador: Everything Is Possible with ‘Small-Is-Beautiful’ Model from FINCA

Equador’s FINCA Impact Finance (FIF) is a network of 20 microfinance institutions and banks that focuses
Read more

Energy Case Study: Peru

Peru is the third largest country in South America with a land area five times that

Nicholas Brady: Soccer Finance and the Pragmatist Who Fixed a Debt Crisis

Back in the days when a top-scoring soccer player could be enticed for a few million,
Read more

Revenue Watch: 4 out of 5 Companies Fail in Good Governance

The Resource Governance Index (RGI) measures the quality of governance in the oil, gas and mining

The IMF on Prospects for Growth: Latin America & Caribbean

Growth in Latin America and the Caribbean is set to pick up from 3 percent in
Read more

UN Report on International Investor Disputes

Foreign investors are increasingly resorting to investor-State arbitration to settle investment disputes, with a record number

Trade with the United Kingdom

Source: UK Office for National Statistics, October 2022.

Contains public sector information licensed under the Open Government Licence v3.0.